Empirical analysis of Italian electricity market.

Summary Deregulation of the electricity market has shown many changes in the economy and has influenced researchers to initiate studies in this area. Italy provides an interesting case study to explore the electricity market because of its specifications. Our project consists of three independent quantitative studies to view the Italian electricity market from three different angles. The first study answers the question of forecasting caused by the volatility of the electricity market. The result suggests an alternative forecasting method for modeling electricity prices in Italy. The second research examines the impact of renewable energy on the occurrence of congestion and its costs. We analyze the quantitative properties of the econometric estimation in order to understand the economic mechanism and derive the policy suggestion. Finally, the final research analyzes the price interdependence in six macro-areas of the Italian electricity market.